Hubbell (HUBB) Q3 2025 earnings summary

Executive summary

• Achieved double-digit adjusted EPS growth in Q3 2025, driven by strong organic growth in Electrical Solutions and Grid Infrastructure, and a lower tax rate.

• Raised full-year 2025 adjusted EPS outlook to $18.10–$18.30, reflecting robust margin expansion and strong free cash flow.

• Closed the acquisition of DMC Power for $825M, expected to be accretive to adjusted EPS by $0.20 in 2026.

• Grid automation sales declined 18% due to large project rollouts, but headwinds are expected to fade in Q4.

• Major acquisitions included Ventev, Nicor, and DMC Power, enhancing the portfolio and market exposure.

Financial highlights

• Q3 2025 net sales rose 4.1% year-over-year to $1,502.4M, with organic sales up 3.2%.

• Adjusted diluted EPS up 12% to $5.17; net income attributable to shareholders up 13% to $255.5M.

• Free cash flow up 34% to $254M, with 90% net income conversion.

• Operating margin expanded to 22.0%; adjusted operating margin at 23.9%.

• Share repurchases of $225M in the first nine months of 2025 contributed to EPS growth.

Outlook and guidance

• Raised full-year 2025 adjusted EPS guidance to $18.10–$18.30, with 3–4% organic growth and 50–100 bps OP margin expansion expected.

• Q4 2025 expected to deliver 8–10% organic growth, with strong contributions from both segments.

• DMC Power acquisition expected to be neutral to 2025 EPS, accretive by ~$0.20 in 2026.

• Preliminary 2026 outlook anticipates strong, broad-based organic growth, supported by grid modernization and electrification trends.

• Adjusted tax rate for 2025 expected at 20.5%–21.0%; free cash flow conversion projected at ~90%.